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Digitalization in Healthcare

Dr. Balazs Szathmary, Innovation Health Partners

Dutch-German Health ConferenceWednesday, September 5th, 2018Sint Antonius Ziekenhuis, Utrecht

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My background

Education• Computer science, Biology and Health Economics (Germany /UK)

Work experience• IT specialist (Marienkrankenhaus, Bergisch Gladbach)• Product manager for HIS software (Aescudata, now CGM)• Consultant (Impact Management Consulting)• Project Leader (The Boston Consulting Group)• Leader EMEA Healthcare Industry Business Unit (Oracle)• Global Vice President Healthcare Solutions (Ascom)• Partner (Innovation Health Partners)• COO (Better@Home Service GmbH)

Memberships

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Introducing IHP

Project development:Strong partners and sustainable concepts

Project management: Results-oriented implementation

Research: Connecting theory to practice

Events: Interesting topics and contacts

Strategy:Successful market entry support

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Our network

Ministries / public health Public insurance Private insurance Associations

Providers IT & eHealth companies ConsultingPharma & MedTech

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We work with many eHealth players

CARDIOGO

GET READY

Source: IHP

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Digitization does not wait and is very fast

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Digitization drives disruptive innovation

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So where is digitization in healthcare?

Digitization in healthcare is lagging behind most other industries

eHealth Card/Infrastructure

Disease & CaseManagement

Telemedicine

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IT spendings per industry

IT spendings per industry in % of turnover

Source: Gartner Benchmark Analysis, 2015

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… and in hospitals

Hospital IT budget as % of operating expenses

5,0%3,8%

2,9%1,7%

0%

1%

2%

3%

4%

5%

6%

US NL DK D

Souerce: HIMSS Europe Database, 2015

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Nordics, Spain and NL in front

Souerce: Resesarch2Guidance

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IT spendings seem to correlate with HC quality

Source: Europe Health Consumer Index, 2016

Criteria1. Patient rights and information 2. Accessibility 3. Outcomes 4. Range and reach of services 5. Prevention 6. Pharmaceuticals

European Health Consumer Index (EHCI), 2017

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eHealth bears lot of opportunities

Increased quality and efficiency of HC services Avoidance of duplicate examinations Faster access and improved interpretability of information More sound decisions Optimized processes

Greater transparency of performance, thus timely and better control options Better (location-independent) access to health services Involvement of patients in decision-making (empowerment) Improved education and training

"Through the consistent use of eHealth solutions in the German healthcare sector, EUR 39 billion (12% of the statutory health insurance costs) can be

saved." PWC study, 2014

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Why does the eHealth rocket not take off?

• HC system/market• Complex federal structure• Divergent interests per sector• Not enough financial pressure• Lack of political will

• IT challenges• Many different (old) IT systems• Missing standards and interoperability

• Legal aspects• Data protection requirements• Unclear international guidelines

• Economical aspects• No reimbursement from the 1st HC market• Lack of business models• Difficult investment climate

• Patients/public• Negative publicity• Divergent patient interests • Deficient patient autonomy• Lack of openness for technology and innovation

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Complexity of the German & Dutch HC systems

Source: Verena Vogt, TU Berlin: Struktur des deutschen Gesundheitswesens; Promising Primary Care Practice Models: A Case study from The Netherlands

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Innovations start to reach even Germany..

of German patients would change their physician to get

access to their medical record electronically

79%

of Germans use the Internet to research for health related

information

43%

0

1

2

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2012 2020

Size and estimated growth of the German mHealth

+333%Mrd. €

Source: Young Lions Gesundheitsparlament, Accenture, A.T. Kearney

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Selected eHealth companies in Germany

Source: healthbytes.de

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Selected eHealth companies in the Netherlands

Source: Dr. Hempel Digital Health Network - 25 Innovative digital health, eHealth, mHealth startups in Netherlands

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• First health market - public health insurance

companies

• Strongly regulated by law, particularly the financial

structures

• Controlled by existing institutions and organisations

• National industry, products and services

• Focus on enhancing the efficiency of established

processes

• Connection between businesses

• Systematic, classical approach

• Clear rules, methods and structures

• Evidence-based, organic development

Evolution

• Second health market - self payers, private health

insurance companies

• Free health market economy

• International industry, innovative products and

services

• Driven by patients interests and insured people

• Digitization for development of new processes and

methods

• B2B, B2C, C2C, social networks

• Cooperation in network structures

• Flexible and open structures

• Disruptive and innovative breakthroughs

Revolution

Evolution or revolution?

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Suggestions not to miss the eHealth train

• PayersStart with small pilots quicklyAddress your innovative, eHealth savvy insured populationRequest economical and clinical evidenceDon’t try to integrate solutions into your core processes

• ProvidersConsider eHealth as strategic advantage rather than a cost factorCooperate with startups – they often offer their solutions for free/at very

low cost during test/reference phase

• eHealth companies Look out in the market for innovative partnersOffer risk-sharing modelsConsider internationalization early (though a tough challenge)

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Thank you very much for your attention!

Should you be interested in our services, please feel free to contact us

Dr. Balazs SzathmaryInnovation Health Partners GmbHUnter den Linden 8010117 Berlin

Mobile: +49-177-5943 102Office: +49-30-23 57 85 81Fax: +49-30-23 57 85 82balazs.szathmary@innovationhealthpartners.dewww.innovationhealthpartners.de

Self-determined living in a home that takes care of you

We address the mega-trendsDemographic change Digitalization / Smart HomeLiving alone at old age

Lack of skilled employeesUrbanization

Elderly living at home alone..Forgetting about the stove

Leaving the water running

Leaving the window open

Leaving the door open

Falling down

Not taking the needed medication

Check-up vital signs

Getting lost on the way home

There is an ever increasing need for concepts, which allow elderly people to live safe and self-determined at their homes as long as possible.

Why was nobody successful so far?Smart Home Provider AAL/ Emergency Provider

Overwhelming & fragmented market

Lack of end-to-end support

Lack of sustainable business models

The Better@Home platform

User

Service bundling

Partners, distribution channels,

financiers

Software

Services

Sensors

Platform Hybrid financing

• Central platform

• One stop shop

• Contracting all partners

• Hybrid financing

• Securing technology

• Data analysis

• Marketing & Sales

• Development of new services

Better@Home company functions

Our stakeholders

Real-estate

Assisted living, nursing home

Medical insurances

Welfare services

Emergency-call centers

Enterprises

Public services

Insurance

People and their relatives

Hospitals, doctors etc.

Stakeholder

Benefits for customers and partners(1/2)• Inventory revaluation• Reduction of empty apartments• Energy efficient building monitoring

• Saving of co-payment costs for nursing homes if citizen is unable to pay• Reduction of empty apartments in the city (relevant of apartments owned by

local authority)

Real Estate

• Extend emergency call portfolio• Supporting implementation of Bundesteilhabegesetz (integration of citizens

with disability into everyday life)

• Marketing• Staff can concentrate on value added care vs. routine • Expanded services

Nursing homes, assisted living

• Marketing• Improved care for insured persons• Cost savings (costs for home care less expensive vs. nursing homes)

Health Insurance

Local authority / Welfare service

Social welface

Hospitals and doctors• Efficient and location independent consultation • Option to care for lack of medical specialists• Improved patient relationship

Benefits for customers and partners(2/2)

Municipal utilities• Customer loyalty• Extension of service portfolio• Possible combination with Smart Metering

Enterprises• Improved work-life (here: home care) balance of employees• Productivity loss reduction• Improved employee commitment

Insurances • Savings – less damage events• Possibility to create new combined insurance packages • Marketing

Users and relatives• Improved patient safety• Less stress for relatives• Costs savings (delayed nursing homes admission)

Coordination, contracting, interfaces, data management

We cover the whole value chain

Technical and Concierge

Services

Emergency calls

Operator(HW, SW)

Installation + Maintenance

Consulting+Marketing +

Sales

Service Partners

PLATFORM

Individual configuration40 sensors can be used for your home Individual escalation for every situation

Home station communicates w/- sensors via and- data center via

Typical installation includes 6-10 sensors for a monthly fee of 65-100 EUR

Easy installation and maintenance

Easy installation Acustic signals

Turn off alarm by touch Mobile notifications

Bitte messen Sie Ihren Blutdruck.

Receiving pictures

Huge Display

Escalation options

• Passive or active emergeny notifications

• Does not have to be an emergeny – you can also book concierge services

• Software routes call to correct recipient

• 24/7 call center receives call and decides on appropriate service

• Either emergency services or concierge services can be booked

• SLAs are defined for every process

• Notification via call/mail/text

Hybrid financing modelsExample

75,00 € / Month

25%

25%

50%

Real-EstateHealth Insurance User/Relatives

The first offeringSummary

Our USPs Addressing mega trends (demographic change, urbanization,

digitization, lack of employees) and a large/quickly growing market First wall-to-wall offering (HW & services)/one-stop shop with experienced

partners Leveraging multiple go-to-market approaches (B2B, B2B2C, B2C),

financing models and sales channels Valuable platform with upsell potential for additional services (health, e-

commerce, etc.) No competitors so far

PROPHEALTHTECH